Tag Archives: subsidy

2015 Tax Penalty for No Health Insurance

Penalty fee for not having health insurance in 2015

Most people are finding that health insurance this year isn’t as “affordable” as they thought it would, so their next question after they get a quote is what is the penalty fee for not having health coverage in 2015?

Well the fee is calculated one of 2 ways. If you or your dependents don’t have a plan that is ACA compliant or that has minimum essential coverage you’ll pay the higher amount of either a percentage of your household income or a flat fee.

The penalty fee for not having health insurance in 2015

When you file your taxes for 2015, and it asks if you had minimum essential coverage, and you didn’t, you will pay 2% of your income or $325 per adult/$162.50 per child, whichever is more.

To break that down even more:
2% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) There is a maximum penalty in this category which is the national average premium for a bronze plan.

$325 per person for the year ($162.50 per child under 18). The maximum penalty per family using this method is $975.

The penalty fee for not having health insurance in 2014

For those of If you didn’t have coverage in 2014, you’ll pay the higher of these two amounts when you file your 2014 federal tax return:

1% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan.

$95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.

The penalty fee for not having health insurance after 2015

The penalty increases every year. In 2016 it’s 2.5% of income or $695 per person. After that it’s adjusted for inflation.

Generally, the cost of a Bronze plan is about as much as you would pay for the penalty, so if you feel you may have to pay the penalty, why not pay the money and have some coverage, verses paying it for nothing?? Just food for thought.

For a quote on the bronze plan click here

To see if you qualify for a subsidy, click here

COBRA Special Enrollment Period

The Department of Health and Human Services recently announced a one time Special Enrollment Period for anyone who has COBRA continuation from Group coverage. This will allow anyone currently on COBRA to enroll in a new ACA plan until July 1st. The normal rules of only being able to enroll in a Marketplace plan when first eligible due to loss of coverage, or when COBRA was exhausted(or during the Open Enrollment), are suspended for this time period. The decision was made because many people were unaware that would no longer be able to leave COBRA coverage during the year, and enroll in an Individual policy. Prior to 2014, people used to be able to purchase Individual coverage at any time during the year, so they could leave COBRA at any time. Under the Affordable Care Act, people are no longer able to purchase Individual coverage during the year, unless they have a Special Enrollment Period. Since COBRA coverage is often very expensive, it always worthwhile to compare Individual Health Insurance prices, especially if you might qualify for a subsidy. Please give us a call at 877-740-8683, to find out if you qualify for a Special Enrollment Period.

Don’t Delay Health Insurance

2014 Coverage Deadline

If you will need Health Insurance in 2014, don’t put off your purchase until the last minute. The absolute deadline for Enrollment in a Plan for 2014 is March 31st. The Marketplace website is again experiencing glitches, down times and waits. If you think you would be eligible for a subsidy, please call 877-740-8683, today to start the process. There will be more backlogs in the final days of the Open Enrollment, so secure your place in line now. You can also visit www.healthreformenrollmentcenter.com for additional resources. If you miss the Open Enrollment period, you will not be able to purchase a Qualified Health Plan for the remainder of 2014, unless you have a Special Enrollment Period due to a specific major life change, and you may be subject to a tax penalty.

Health Insurance Deadline in Texas

We wanted to remind everyone that the last date to purchase Health Insurance for 2014 will be March 31st. After that date, the Open Enrollment will be closed for the rest of the year. A lot of people are under the impression that the deadline only applies to Marteplace, or Exchange, Plans, but the deadline will apply to all Individual Health Insurance. After March 31st, the only Plans that will be available from any carrier will be Short Term Plans. Short Term Plans do not cover pre-existing conditions, are not Guaranteed Issue, and do not qualify as Minimum Essential Coverage. So, if someone is covered by a Short Term Plan, they will still be subject to the Tax Penalty this year. If you or someone you know needs Health Insurance, please call 877-740-8683, as soon as possible, to explore your options. Even if you have a current plan, you will not be able to change to a new plan after the deadline.  So if you think you think you may want to change plans before 2015, please visit www.freedomfreequote.com , to request a personalized quote. Don’t get caught without Health Insurance, or get stuck in a plan you aren’t happy with. You may even qualify for a subsidy to help with costs. You can also visit www.healthreformenrollmentcenter.com for additional resources.

Obamacare Premiums to Soar in Most States

As we anticipated … we are now hearing from the media how much Obamacare premiums will be, and who is really going to pay.  Read the post below on CNNMoney for more information.

CNNMoney.comBy Tami Luhby | CNNMoney.com – Tue, Aug 6, 2013 5:57 AM EDTA Tea Party member reaches for a pamphlet titled "The Impact of Obamacare", at a "Food for Free Minds Tea Party Rally" in Littleton, New Hampshire in this October 27, 2012 file photo. REUTERS/Jessica Rinaldi//Files

Reuters – A Tea Party member reaches for a pamphlet titled “The Impact of Obamacare”, at a “Food for Free Minds Tea Party Rally” in Littleton, New Hampshire in this October 27, 2012 file photo. REUTERS/Jessica …more 

Get ready to shell out more money for individual health insurance under Obamacare … in some states, that is.

While many residents in New York and California may see sizable decreases in their premiums, Americans in many places could face significant increases if they buy insurance through state-based exchanges next year.

That’s because these people live in states where insurers were allowed to sell bare-bones plans and exclude the sick, which has kept costs down. Under Obamacare, insurers must offer a package of essential benefits — including maternity, mental health and medications — and must cover all who apply. But more comprehensive coverage may lead to more expensive insurance plans.

Under Obamacare, all Americans must have insurance coverage starting in 2014 or face penalties of $95 or 1% of family income, whichever is greater. Enrollment in the exchanges begins October 1, with coverage kicking in in January. Plans will come in four tiers, ranging from bronze to platinum.

Some lightly regulated states, including Indiana, Ohio, Florida and South Carolina, have recently released preliminary rate information highlighting steep price increases. Unlike the blue states of California and New York, these are Republican-led states that have strongly opposed the Affordable Care Act, as Obamacare is officially known.

Comparing this year’s and next year’s plans isn’t easy because the structure of the plans is so different. Each state comes up with its own method.

Behind the numbers in 3 key states. In Florida, for instance, officials constructed a hypothetical silver-level plan based on the offerings available today. Then they looked at how the cost of that plan compares to the average silver plan that will be available on the exchange. Florida found premiums will rise between 7.6% and 58.8%, depending on the insurer. The average increase would be 35%.

The main driver of the premium increases is the Obamacare mandate that coverage be offered to everyone, said Kevin McCarty, Florida’s insurance commissioner. There are just short of a million enrollees in the individual market in Florida, while 3.8 million are uninsured. The state does not allow new entrants into a “high-risk pool,” which provides coverage to the sick.

“People who are in their 50s with high blood pressure have no coverage options,” he said.

Ohio, meanwhile, said there would be an average increase of 41% by comparing a trade association’s report of premiums for all plans available today with the average premium expected on the exchange.

Indiana officials said prices would rise an average of 72%. But they were looking at the cost of providing care, not actual premiums.

All of these rate hikes must still be reviewed by the federal government and do not take into account the fact that Americans with incomes up to $45,960 for an individual and $94,200 for a family of four will be eligible for federal subsidies.

So why aren’t there such big premium increases in other states? New York, for example, already required that insurers provide comprehensive coverage to all who apply. Rates there could fall by half since the pool will expand to include many younger, healthier residents under Obamacare. But New York is more the exception than the rule, experts said.

Rate hikes depend on age and gender. To give consumers a better idea of how premiums will change, CNNMoney took a look at the plans provided by one insurer: Physicians Health Plan of Northern Indiana.

Our analysis found that 21-year-old men will pay a lot more for an exchange plan, but 42-year-old women and 62-year-old men will shell out less for a silver-level plan that comes with a $2,500 deductible and a roughly $25 co-pay for office visits.

Under this scenario, a young man’s monthly rate will rise to $214 on the exchange next year, up 63% from today. The woman, however, will pay $284, a drop of more than 7%, while the older man will be charged $615, a nearly 6% decrease. This is because Obamacare requires that women pay the same amount as men and does not allow insurers to charge older participants more than three times the young.

Physicians Health expects most enrollees to sign up for bronze or silver plans, which have lower monthly premiums but carry higher deductibles and co-pays, according to Jim Brunnemer, the insurer’s chief financial officer. Today, its members typically buy high deductible plans.

While premiums may go up in these states, Obamacare advocates say people will receive more comprehensive coverage. Also, the law limits the amount people have to pay out-of-pocket for deductibles and co-pays to $6,350 in 2014.

“A lot of people will get more for their money,” said Sarah Lueck, senior policy analyst for the Center on Budget and Policy Priorities. “Even people paying a higher rate will benefit. It will be a big change in most states.”

View this article on CNNMoney

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As always, we will be your source for the Open Enrollment beginning October 1, 2013.  Give us a call or visit our website for quotes and to determine if you qualify for a subsidy, how much and how to apply.

www.HelpMeBuyHealthInsurance.com
Toll Free 877-740-8683